Fintech
BNPL regulation grabs headlines as FinTech IPO index slides
The FinTech IPO Index lost 2.6% as earnings recovered.
The buy now pay later (BNPL) space arguably dominated – dominating headlines as the Consumer Financial Protection Bureau (CFPB) stepped in with new oversight of providers.
The CFPB takes action
Like PIMNTI reported On Wednesday (May 22), the CFPB ruled that BNPL vendors are credit card vendors and must provide certain legal protections and key rights afforded by conventional credit cards. This includes, for example, the consumer’s right to dispute charges and request a refund from the creditor, the agency said.
The interpretive rule released Wednesday by the CFPB says BNPL lenders must investigate consumer-initiated disputes, suspend payment requirements during the investigation, credit refunds to consumers’ accounts when they return products or cancel services, and provide periodic statements as those traditionally provided by conventional services. credit card accounts.
Shares To assert it has lost 5.2% in the last five sessions. Shares Sezzle decreased by 0.7%.
XP gains results lower the index
XP shares fell 15.8%. The company reported the findings last week in detail, client assets amounted to 1.1 trillion reais ($213.82 billion) in the first quarter of 2024, up 20% year-on-year and 2% sequentially. Active customers grew 16% compared to last year and 1% compared to the fourth quarter of 2024 for a total of 4.6 million in the most recent period. The total number of consultants was 17,700, with an increase of 16% on an annual basis.
Average daily retail transactions totaled 2.2 million last quarter, down 9% from last year. Total active cards in the first quarter were 1.2 million, a growth rate of 49% compared to last year.
Robin HoodThe latest news on rates linked to its brokerage products sent shares up 7.5%.
As reported by PYMNTS here, Robinhood has introduced new lower margin rates which it says are the lowest among major brokers. Fees vary based on the client’s total margin balance and range from 5.7% to 6.75%, the online brokerage said this week. Six rates are offered in this tiered margin structure, ranging from 5.7% on margin balances of $50 million or more to 6.75% on margin balances up to $50,000.
Flywire said earlier this month that expanded availability of its third-party billing solution, which simplifies the payment experience for third-party sponsors paying a student’s tuition and fees. The company said institutions can reduce administrative burden, facilitate reconciliation and increase revenue by creating, issuing and tracking invoices to engage sponsors and encourage timely payments.
Flywire shares gained 5.8%.
FinWise Bank said he threw a new strategic lending program with Plannery, a financial wellness platform that hospital systems can offer their employees to become and stay debt-free.
The FinWise lending product allows hospital systems to offer their employees ways to consolidate and reduce interest rates on credit cards and personal loans. Linking payroll to transactions, the companies say, helps reduce missed payments and late fees and speeds employees’ path to financial stability. Plannery and FinWise will offer this innovative product through corporate sponsorships such as hospitals and strategic partners. The product will be a fixed rate unsecured loan available nationwide.
FinWise shares lost 0.8%.
SoFi announced the positioning of a Securitization of $350 million personal loans exclusively with funds and accounts managed by PGIM Fixed Income, a Prudential finance agency. To date, SoFi said in the release, it has sold more than $15 billion and securitized more than $14.5 billion in personal loan collateral. SoFi shares lost 4.1%.
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